In Malaysia, registering with the Social Security Organisation (SOCSO), also known as PERKESO, is a critical legal requirement for businesses. SOCSO provides social security protection to employees, covering workplace injuries, invalidity, and other risks. Complying with SOCSO regulations ensures the welfare of your employees and protects your business from potential liabilities.
What is SOCSO?
SOCSO was established to manage two main protection schemes for employees:
1. Employment Injury Insurance Scheme (EIS): Covers workplace-related injuries and diseases.
2. Invalidity Pension Scheme (IPS): Offers protection against disabilities unrelated to workplace accidents.
Employers must register all employees earning RM4,000 or less per month. Contributions are required from both employees and employers to these schemes, with differing rates for employees earning more than RM4,000.
Why SOCSO Compliance is Crucial
1. Legal Requirement: Malaysian law mandates SOCSO registration. Non-compliance can result in fines up to RM10,000 or two years of imprisonment.
2. Employee Protection: SOCSO ensures financial support for employees in the event of workplace injuries, illnesses, or disabilities. Employers demonstrate care for their workforce, fostering trust and loyalty.
3. Liability Protection: SOCSO helps cover medical and rehabilitation expenses. Without it, employers may be personally liable for such costs.
4. Business Reputation: Complying with SOCSO reflects ethical business practices, enhancing your company’s reputation.
How to Register for SOCSO
SOCSO registration is simple and can be done either online or at a SOCSO branch. Follow these steps:
Step 1: Gather Required Documents
Prepare the following documents:
• Company registration certificate (Notice of Registration, Company’s latest SSM extract)
• Employer’s IC
• Company registration number
Sole proprietors should also include the business registration form from SSM.
Step 2: Register via ASSIST Portal
The SOCSO ASSIST Portal allows employers to register online:
1. Visit https://www.perkeso.gov.my.
2. Select “Employer” and click “New Employer Registration”.
3. Fill in the company and employee details.
4. Upload the necessary documents.
5. Once approved, you’ll receive an Employer Code to manage contributions.
Step 3: Register Employees
After registering the company, log into the ASSIST Portal with your Employer Code and register your employees. Ensure all eligible employees are included in your SOCSO contributions.
Step 4: Make Monthly Contributions
Employers must submit monthly SOCSO contributions based on employee wages. The contributions are shared between employer and employee. Use the ASSIST Portal to calculate and submit the payments.
Staying Compliant
SOCSO compliance requires ongoing attention. Employers must submit contributions on time, register new employees within 30 days, and update any changes in employment status. Keeping accurate records is essential to avoid issues during audits.
Conclusion
SOCSO compliance is essential for legal and ethical business operations in Malaysia. By registering and maintaining compliance, you safeguard your employees’ welfare while protecting your business from legal and financial risks. Ensure you follow the registration process and stay up-to-date with your contributions to create a secure and responsible work environment. If you need guidance, we are here to help. Give us a call at 016 324 0990.
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